Nearly two months after the September 6 exploit that drained about 4,000 BTC from its federation wallet, Blockstream CEO Adam Back shared a Liquid reserve dashboard showing LBTC supply once again fully covered by bitcoin.

The dashboard shows a reserve deficit of 0.00 BTC and assets at 100% of liabilities, with LBTC supply back above 4,000 BTC.

Attackers used a range-proof caching bug in the Elements software to mint unbacked LBTC and withdraw it from the federation. Self-described white hats later returned around 3,400 BTC, leaving a shortfall of roughly 600 BTC that Back had pledged to cover.

Under the federation's staged recovery plan, BTC to LBTC swaps came back first, and restoring full 1:1 backing is the step before controlled reactivation of federation peg-outs. The resumption of direct peg-outs has not yet been separately confirmed.